2010 (7) TMI 266 - AT - Service Tax

Penalty - Appellant challenge the penalty u/s 76 and 78. Held that - penalty u/s 76 was to be set aside as section 76 and 78 are mutually exclusive. Since the assessee had not paid service tax on total turnover during relevant period, assessee was guilty of suppression and penalty u/s 78 had rightly been imposed on it.

Summary

The appellants accepted liability for service tax as Cable Operator Service but contested penalties under sections 76 and 78 of the Finance Act, 1994. The penalty under section 76 was set aside, but the penalty under section 78 was upheld due to the assessees' failure to pay service tax on their total turnover. (Source: http://www.taxmanagementindia.com/visitor/detail_case_laws.asp?ID=78641)